Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment workers urged to boost sector’s productivity

Garment workers urged to boost sector’s productivity

Garment workers trace pattern templates at a factory in Phnom Penh south last year.
Garment workers trace pattern templates at a factory in Phnom Penh south last year. Kimberley McCosker

Garment workers urged to boost sector’s productivity

Prime Minister Hun Sen yesterday urged garment workers to improve their productivity in order to prevent factories from closing shop and moving to such countries as Laos, Bangladesh and Myanmar, all of which have lower minimum wages.

His comments came during a graduation ceremony at the National Technical Training Institute, where he also pointed out relatively rapid gains in the minimum wage for Cambodia’s garment workers, which was recently set at $153 a month for the coming year.

“The countries that are absorbing the factories from us are Myanmar, with a minimum wage of $60 to $80; Laos, with [a minimum wage] of $100; and Bangladesh, [with a minimum wage] of $100,” he said. “The factories might pass our country.”

Miguel Chanco, lead ASEAN analyst for the Economist Intelligence Unit, yesterday agreed that countries such as Myanmar and Bangladesh “present a real threat to Cambodia’s garment industry, primarily because of how much more expensive it is to hire workers in Cambodia”.

“The steep increases seen in the minimum wage of Cambodia’s garment industry since 2013 pretty much mean that it now costs twice as much to hire someone in Cambodia – when compared with labour costs in Myanmar and Bangladesh – which is critical given the labour-intensive nature of the industry,” he said via email.

Garment Manufacturers Association in Cambodia deputy secretary-general Kaing Manika said it was impossible to deny the threat posed by Myanmar and Bangladesh.

“Want it or not, [they] have joined the list of Cambodia’s competitors,” he said in an email. “It’s not a threat, but a requirement for Cambodia to perform better.”

But William Conklin, country director for the Solidarity Center, said the situation was more complicated than simply demanding that employees work harder. “For production to increase, it’s the employer that needs to take the first step by providing a decent work environment for workers,” he said.

“There’s a role for all players . . . to really come together and try to help preserve and develop the sector.”

Pav Sina, president of the Collective Union of Movement of Workers, meanwhile, said the wage issue was not to blame for factories shuttering. He points to rather long-standing complaints about bribery, infrastructure woes and non-competitive electricity prices.

“What is important for some investors is the high transportation fees and the electricity prices, which are higher than in other countries,” he said.

MOST VIEWED

  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Manet touches down in Beijing for high-level meetings

    Prime Minister Hun Manet arrived in Beijing on September 14 for his first official visit to China, where he is slated to attend the 20th China-ASEAN Expo and meet other leaders including Chinese President Xi Jinping. Upon his arrival, Manet laid a wreath at the Monument